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As exchange withdrawals slow down, Shiba Inu is facing yet another potentially troublesome on-chain change. One of the signals that had previously supported a more bullish interpretation of the token's exchange activity has been eliminated by the significant decline in the seven-day moving average of mean SHIB exchange outflows.
Shiba Inu peaks out
According to the most recent reading, mean exchange outflows are roughly 421.6 million SHIB, a decrease of 55.75% over the previous period. However, the contraction is closer to 78% when compared to its most recent peak. This is significant because persistent withdrawals from exchanges typically signify that tokens are shifting away from instantly accessible trading liquidity.
The decline is more significant in light of the remaining exchange data. As of right now, total exchange inflows are roughly 239.28 billion SHIB, up 1.07%, while total outflows are roughly 236.97 billion SHIB, up 1.3%. Netflow is now positive at about 2.31 billion SHIB. To put it another way, SHIB is currently entering exchanges at a slightly higher rate than exiting them.
Deposits are surging
There is currently no indication of a significant wave of deposits because exchange reserves, at 87.19 trillion SHIB, are essentially unchanged. However, the prior supply-side advantage is eroding due to the combination of positive netflow and declining average withdrawals.
A slightly better picture is given by network activity. The number of transactions has increased by 1.22%, active addresses have increased by 1.13%, and active receiving addresses have increased by 1.29%. There hasn't been a clear price breakout despite these slight gains.
Right now, SHIB is trading at about $0.00000514. The token is still stuck in the vicinity of $0.0000050–$0.0000052, a dense cluster of shorter-term moving averages. The long-term moving average around $0.0000056–$0.0000057 continues to be the biggest barrier.
A test of $0.0000056–$0.0000058 might be reopened if it rises above $0.0000054. However, losing $0.0000050 would expose about $0.0000048 and possibly $0.0000045. The 78% outflow contraction eliminates a potentially significant source of support at a time when the price is still technically vulnerable, but it does not ensure another SHIB sell-off.
Dan Burgin
U.Today Editorial Team
